Power and gas prices ‘opened flat’ today

Prices across the gas and power systems “opened flat” this morning, according to the daily market report. Seasonal gas contracts have been “much lower” although they are roughly flat across […]

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By Priyanka Shrestha

Prices across the gas and power systems “opened flat” this morning, according to the daily market report.

Seasonal gas contracts have been “much lower” although they are roughly flat across the power and gas systems, Gemma Bruce, Client Portfolio Manager at npower said.

Both the systems however opened “comfortably” this morning, with a peak margin of around 16GW.

“This is in line with the usual Friday wind down from industry and also the continuation of improvement in nuclear generation following the returned service of the Hunterston B Unit 7 yesterday”, Ms Bruce added.

She said wind generation remains “robust” at around 5GW and while gas represents around 17% of the UK’s electricity mix currently, coal remains the dominant source with 41%.

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Ms Bruce added: “With temperatures in the UK in line with the Continent this morning, we’ve seen an improvement in Dutch flows via the BBL pipeline and is currently importing around 32 mcm compared to the 26 we saw yesterday morning.”

Looking forward she said: “Things to look out for are the continued strength of carbon, which continues to trade above €7 (£5.8) this morning and also the continuation of strength in Brent, which is trading at around $110 (£65.8) per barrel. This is supported by the continuation of issues in both Libya and Sudan.”